If you work for a contractor in the construction industry as a self-employed individual then, according to the Construction Industry Security Act a contractor is obliged to withhold tax on its payment to you. It is unlike other self-employed individuals who receive their payment grossly.
Payments made to those who are registered to Construction Industry Security, are net of 20 percent tax on payment.
Who can make a claim:
If you are a subcontractor of a limited company or an agent of a limited company, then you can claim a repayment of the Construction Industry Scheme industry like an HMRC tax refund check.
To claim what you need:
You can claim both by post or online, for apply you shall need this information as
- Company Name, Telephone Number, UK address number
- Paye reference number
- Company unique tax reference number
- Estimated overpayment amount
If you want us to take your payments out of any additional debt you have Corporate Tax – tax unique reference together with the end date or accounting period number of your accounting period.
VAT- Your VAT registration Number and the time of your VAT Return.
You should not send any supporting information with your claim, but if your claim does not match their record then we may request more details.
If you want to pay the refund into a bank or building society account, you shall need to provide them;
Claim Change:
If you are an agent, you will need to use the government Gateway user ID used to sign in to your agent services account HMRC tax refund check.
CIS Refund Services:
An overpayment of tax during the year is almost inevitable for those who work under the Construction Industry Scheme (CIS).
CIS refunds are not guaranteed always, most of these situations are due to faulty tax documentation when the time comes to submit CIS HRMC forms.
How can I receive a tax refund:
To get a refund from HRMC, you must submit and forward your 2022-2023 tax return by 6th April 2023. This deadline applies after the end-year tax.
Conclusion:
The Construction Industry Security Act mandates that self-employed individuals in the construction industry are required to withhold tax on their payments. Subcontractors and agents of limited companies can claim a refund tax.
To claim, provide the necessary information, such as company name, telephone number, payment reference number, estimated overpayment amount, corporate tax, and VAT registration number or consult with the best-chartered accountants of Adam Accountancy in Slough. HMRC typically takes six to twelve weeks to process and pay the rebate.
Q. Can I get a refund in a year:
- One of the most common is asking workers if can they get in a year. The answer is Yes, But this only applies where work in a construction company has ceased, and all taxes are up to date.
Q. How much time does HMRC require to process a refund of taxes and pay it out?
- It takes on average between six to twelve weeks for HMRC to process and pay the rebate, if once your return has been filled.
Q. What happens to your rebate if you have penalties from previous years?
- The rebate will remain on your HMRC account and you also can check the HMRC tax refund check if you have eminent penalties or fines from previous years
To discuss how Accountants in Slough can assist you with your Accounts Preparation, please contact us for a free, no obligation consultation on: 0333 772 1616 or complete our Contact form and we will get back to you.
